Ajit Gulabchand-led HCC has sought shareholder approval to raise up to R1,000 crore or equivalent in any foreign currency through available financial instruments.
The company in its 2014-15 annual report said: “The board shall issue securities… to meet long-term working capital and capital expenditure requirements of the company and subsidiaries, joint ventures and affiliates…besides strengthening the balancesheet of the company, including repayment of debt, tap acquisition opportunities, usage for business ventures/projects and other general corporate purposes”.
The company said it is an enabling resolution for the company board to “create, issue, offer and allot equity shares, GDRs, ADRs, Foreign Currency Convertible Bonds, Convertible Debentures and such other securities at such price as may be deemed appropriate by the board at its absolute discretion”.
In a letter to the shareholders, HCC chairman and managing director Ajit Gulabchand said he was “cautiously optimistic” of the company’s prospects in the current financial year. “I am cautious of the rate of growth of the top-line and the number of new and significant projects that will be tendered,” he said. However, he added the company shall remain focused on the fundamentals of performance by maximising productivity and with an “unwavering attention to controlling costs”.